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Heavy put buying in industrial fund

The SPDR Industrial Fund is pushing back toward the week's highs, but a large downside trade tops its option action today.

optionMONSTER systems show that volume in the XLI is almost entirely in the June 38 puts. A trader purchased 10,000 of those contracts, led by a big print of 8,520 that went for the ask price of $0.91, against previous open interest of 2,401 contracts.

The put buying isn't tied to any trading in the underlying shares that we can see today. It could be an outright bearish play or a hedge against an existing long position in the fund or the underlying stocks. (See our Education section)

The XLI is up 0.9 percent to $40.43. It closed at $40.59 on Tuesday, which was a five-year high and not far off all-time highs. The fund has run up from support at $35 since mid-November.